I currently use Scottrade, and i love the site, sevice, and features, but they warned me that i have to stop day trading because i don't carry the minimum balance of $25,000.
So which sites will let me day trade for less?
2007-03-07 08:54:16 · 4 answers · asked by smartestmanalive 2 in Business & Finance ➔ Investing
If you have 4 or more daytrades in 5 business days, you'll be deemed a pattern daytrader and you'll need to maintain a minimum of $25k in a margin account. This is the case no matter which broker you use--it's a NASD regulation.
2007-03-07 17:38:34 · answer #1 · answered by LongArm 3 · 0⤊ 0⤋
I'm fairly certain it's because there is a law on day trading now. It's treated as a gambling habit by the government and the statistics back the government up. The average length of a day trader is 2 1/2 years before they go broke. Even the ones that don't go broke have average 15% in gains while buy and hold average 13% in gains.
2007-03-07 09:04:52 · answer #2 · answered by gregory_dittman 7 · 0⤊ 0⤋
That's an NASD regulation, not a Scottrade thing.
2007-03-07 09:02:24 · answer #3 · answered by BosCFA 5 · 0⤊ 0⤋
Yes. (Outside the United States of America)
2007-03-07 15:28:05 · answer #4 · answered by Anonymous · 0⤊ 3⤋